Regulators have voted to continue work on an actuarial guideline that discusses how insurers should reserve for universal life products with secondary guarantees.[@@]
Regulators who belong to the Life & Health Actuarial Task Force voted 11-3 against a motion that called for the task force to stop work on Actuarial Guideline 38 and pursue a reserving solution that would involve asset adequacy testing.
The vote took place here at the spring meeting of the National Association of Insurance Commissioners, Kansas City, Mo.
Retiring Arkansas Deputy Commissioner John Hartnedy called for the motion. He had support from commissioners from Nebraska and North Dakota.
The LHATF’s parent committee, the Life “A” Committee, has been encouraging the LHATF to come up with a reserving proposal based on new types of statistical analysis of asset adequacy rather than on static formulas.
During the winter NAIC meeting in December 2004, commissioners on the “A” committee responding to concern from many insurers instructed LHATF to revisit the issue.
Nebraska Director Tim Wagoner and North Dakota Insurance Commissioner Jim Poolman were among the commissioners who questioned LHATF’s decision to pursue AG 38 in spite of fierce opposition by a large number of companies.